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US stocks rise for fifth day to highest level in a month on trade relief with Mexico while China challenges remain

Jun 10, 2019

 

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Market data as of 12:30 pm EST

US Market Snapshot

  • US stocks post gains for the fifth day, closing at the highest level in a month on trade relief with Mexico
  • The S&P 500 finished up 0.47%, Nasdaq Composite up 1.05%, and Russell 2000 up 0.61%
  • The US and Mexico came to an agreement that will avoid the US tariffs on Mexico that were due to start today
  • Treasury Secretary Steve Mnuchin said the "main progress" on talks with China will occur when President Trump meets with President Xi at the G-20 summit in Japan
  • President Trump threatens China again: Trade War Trash Talk: If you don't meet me, more tariffs for you! 
  • Financials stocks options: Financial Stocks Options Look Cheap As Interest Rates Are Set To Drop
  • Top Trending Stocks:Financials and Health Care at the Forefront of Top Trending Stocks by Positive Sentiment
  • Citigroup published a strategy note saying the S&P500 is heading for a "full scale bear market"
  • Emerging Markets ETFs saw the sixth week of outflows with $7 billion exiting them over the past week
  • UK manufacturing fell 3.9% in April, with vehicle production plummeting 24%
  • Consumer Discretionary (+1.05%), Tech (+0.98%), and Financials (+0.89%) stocks were the top performers in the S&P 500 today
  • Telecom (-0.14%), Real Estate (-0.3%), and Utilities (-0.6%) stocks were the worst performers in the S&P 500 today
  • Investor sentiment for US stocks finished positive with the advance/decline ratio for the S&P 500 closing at 1.72x
  • 207 stocks in the S&P 500 hit 4-week highs while 3 stocks reached 4-week lows
  • 55 stocks in the S&P 500 closed overbought while 14 stocks closed oversold according to the 16-day RSI Measure
  • 84 stocks in the Nasdaq Composite hit 4-week highs while 207 stocks reached 4-week lows
  • 288 stocks in the Nasdaq Composite closed overbought while 315 stocks closed oversold according to the 16-day RSI Measure
  • The VIX finished flat at 16.07 after closing at 16.3 last week

Stocks Trending in the News

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Global Consumer Stocks Trending in the News

  • Beyond Meat Inc. (BYND) shares appreciated as much as 25% intraday, extending its rally to 87% over two days of trading as analysts and investors continued to be wowed by the faux meat producer’s first earnings announcement as a public company. Still, it is worth noting that roughly 51% of Beyond Meat shares are held short. Beyond Meat is not rated in our Global Top Stock Ideas.
  • Caesars Entertainment Group (CZR) in talks and close to a deal to combine with rival Eldorado Resorts Inc (ERI), according to press reports.  Caesars and Eldorado are trying to finalize a cash and stock offer that would result in Eldorado running the combined entity.  Caesars is one of the largest casino operators with over 50 casinos in 13 states.  Caesars has a market cap of $6 billion with $9 billion in debt while Eldorado has a market cap of $4 billion with debt of $3 billion.  No comment from either company.  Caesars is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.   Eldorado Resorts Inc is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Hudson’s Bay (TSX:HBC), owner of Saks Fifth Ave, received a proposal from a group of its shareholders including its Chairman, to take the company private.  The group is offering C$9.45 per share, a 48% premium to Friday’s close, for a total value of about C$1.74 billion.  The group of shareholder represents 57% of outstanding shares of the Hudson’s Bay.  Hudson’s Bay has struggled to improve performance in recent years and has shed a number of assets.  Hudson’s Bay is rated “Attractive” in our Canada All-Cap Global Top Stock Ideas
  • Kraft Heinz (KHC) rose sharply after the company published its long-delayed 10-K and its restatements of results came in line.  Kraft Heinz completed its internal investigation over procurement issues and there were no additional surprises.  Its write-down of $15.4 billion did not change.  Kraft Heinz is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.
  • Tyson Foods (TSN) has recalled more than 190,000 pounds of chicken fritter products, according to the USDA.   The chicken in questions was shipped to food service institutions and not sold through retail outlets.  Customers reported finding pieces of plastic in some chicken fritter bags.  Tyson Foods is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Staples Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • Alibaba (BABA) has chosen China International Capital Corporation (SEHK:3908) and Credit Suisse Group (SWX:CSGN) to lead its listing in Hong Kong, Bloomberg reports.  Alibaba has not finalized a fundraising target and press reports are that it could reach $20 billion.  A listing that size would be the largest in Hong Kong since 2010.  Alibaba is said to be preparing a formal listing filing for the next few weeks.  Alibaba is rated “Attractive” in our China All-Cap Global Top Stock Ideas.  China International Capital Corporation is rated “Unattractive” in our China All-Cap Global Top Stock Ideas.  Credit Suisse Group is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Analog Devices (ADI) was upgraded 2 notches by Goldman Sachs to buy from sell.  Analog Devices saw its price target hiked to $114 from $101.  Analog Devices will see rising gross margins from the $100 million in cost synergies expected from its cost reduction efforts.  Goldman sees the end of the cyclical correction approaching.  Analog Devices is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas
  • Dish Network (DISH) and AT&T’s (T) DirecTV are opening to a merger, according to a Bloomberg report.  Dish and DirecTV tried to combine 17 years ago but the FCC and Justice Dept would not approve the deal.  Since then a flood of competitors have sprouted and the concentration of market share of a proposed merger would be a shadow of what it was 17 years ago.  Both are losing subscribers in droves.  Neither has made a comment on the report.  Dish Network is rated “Top Short” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  AT&T is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas
  • Insys Therapeutics (INSY) filed for bankruptcy under the weight of opioid-related liabilities.  Insys recently agreed to a large settlement with the government over its probe into its sales practices.  Insys said the move will allow it to devise a plan to pay its liabilities and maximize value for shareholders.  Insys is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • Microsoft (MSFT) will test its new videogame-streaming project in October.  Microsoft said the testing phase will allow users to stream any X-Box game to a mobile device, though Microsoft did not say which device(s).  At a press conference Microsoft showed 60 games it said will initially be able to be streamed.  Microsoft is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas
  • Salesforce.com (CRM) has agreed to acquire Tableau (DATA) in an all-stock deal valued at $15.3 billion.  Salesorce.com is making the acquisition to bolster its data analytics offerings.  Salesforce.com is paying a 42% premium to Tableau’s Friday closing.  Tableau will continue to be run separately and remain based in Seattle.  Salesforce.com said the deal will cut earnings this year by 37 to 39 cents to $2.51 to $2.53.  Salesforce.com is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  Tableau is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.

Global Industrial Stocks Trending in the News

  • American Airlines (AAL) is considering acquiring Airbus’ (ENXTPA:AIR) proposed A321XLR as its long-haul single-aisle aircraft.  American would replace its fleet of aging 757-200s in what would be a blow to Boeing (BA).  American is evaluating the plane and as the largest airline in the world carries a lot of weight with its decisions.  Boeing is focused on getting the 737 Max back in the air and has not made any 757 related product decisions.  American Airlines is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.   Airbus is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  Boeing is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.   
  • FedEx (FDX) said it would not renew its air cargo contract with Amazon (AMZN) and instead focus on “serving the broader e-commerce market.”  FedEx makes the move as Amazon moves farther into FedEx’s market.  Amazon has created Amazon Air to serve its own needs.  The contract with Amazon expires at the end of this month.  The move by FedEx was a surprise for the market.  FedEx is rated "Unattractive" in our US Large-Cap Global Top Stock Ideas and " Top Buy" in our US Industrials Global Top Stock Ideas.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Thermo Fisher Scientific (TMO) and Roper Technologies (ROP) announced they have terminated the deal in which Thermo Fisher was due to acquire Gatan, Inc, a subsidiary of Roper.  Thermo Fisher and Roper said they terminated the deal given the challenges in getting the deal approved by regulators in the UK.  The supply contract that was already in place in which Gatan supplies Thermo Fisher will remain intact.  Thermo Fisher Scientific is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  Roper Technologies is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.      
  • United Technologies (UTI) and Raytheon (RTN) are merging in what will create the world’s second largest aerospace and defense company.  The deal will be an all-stock merger.  United Technologies recently existed the elevator business and is fully focused on defense now.  The combined company will have a market cap of over $100 billion. With annual revenue of over $74 billion.  United Technologies is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.  Raytheon is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.   

Global Financials Stocks Trending in the News

  • Apollo Global Management (APO) is in the lead to acquire Shutterfly (SFLY), according to a report in Reuters.   Reuters said the deal values Shutterfly at more than $2 billion though did not mention an acquisition price.  Reuters added that a deal could be announced as early as next week.  Apollo Global Management is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.  Shutterfly is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Fannie Mae (FNMA) and Freddie Mac (FMCC) shares both slid today after US Treasury Secretary Steven Mnuchin indicated that the companies will not be freed from US control without an overhaul to the country’s housing finance system. The comments by Mnuchin eliminated any hopes among investors to make a quick gain from their stakes in the mortgage companies. Fannie Mae is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas. Freddie Mac is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.

Global Commodities & Power Stocks Trending in the News

  • Ferrellgas Partners (FGP) shares surged by double digits after the company announced financial in the third quarter that were mostly in line with analyst estimates. Ferrellgas generated an adjusted EBITDA of $88.6 million during the fiscal third quarter that was in line with consensus. Ferrelgas also reported earnings in the fiscal third quarter of $0.21/unit that came ahead of consensus of $0.18/unit. Ferrellgas is rated “Neutral” in our US SMID-Cap Global Top Stock Ideas.
  • PG&E (PCG) cut electric to a resort area this weekend to avoid wildfires from its transmission lines.  PG&E had warned it would cut electric when the National Weather Service issues a red-flag warning that indicates a high chance of a wildfire due to dry conditions.  PG&E cut power to 22,000 customers who were forced to rely on generators.  PG&E is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas

Global Health Care Stocks Trending in the News

  • Tandem Diabetes (TNDM) shares slid by double digits after data from the American Diabetes Association meeting failed to reach expectations that was heightened heading into the meeting. Data indicated a primary endpoint with time in range of 71%, which was better than the control of 59% but lower than expectations for the mid 70s. Tandem Diabetes is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • Tilray (TLRY) shares traded higher by double digits after the company’s largest shareholder agreed to merge with the cannabis company. Privateer Holdings signed a non-bind letter of intention with Tilray to also extend the lockup of its stake in the company for two years, eradicating any concern that the company could flood the market of Tilray shares with 75 million currently held. Tilray is not rated in our Global Top Stock Ideas.

 

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US Treasuries

  • US 2-Year Treasury Notes are lower with yields up 5.02 basis points to 1.89%
  • US 5-Year Treasury Bonds are lower with yields up 5.77 basis points to 1.91%
  • US 10-Year Treasury Bonds are lower with yields up 6.4 basis points to 2.14%
  • The US Treasury 2s-5s Spread has widened 0.75 basis points to 0.01%
  • The US Treasury 2s-10s Spread has widened 1.38 basis points to 0.25%
  • US Treasury 5s-10s Spread has widened 0.63 basis points to 0.23%

Currencies

  • EUR€ is little changed 0.141% against the USD$ in after hours to 1.1318
  • GBP£ is down 0.353% against the USD$ in after hours to 1.2692
  • CHF is down 0.188% against the USD$ in after hours to 1.0104
  • JPY¥ is up 0.25% against the USD$ in after hours to 108.46

Commodities

  • WTI Crude is down -1.35% to USD$53.26/bbl with the Brent-WTI spread little changed USD$-0.18 to USD$9.99/bbl
  • Gold is down -0.93% to USD$1328.41/oz

 

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

S&P 500 Sector ETFs - Intraday

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

Russell 1000 Factor ETFs - Intraday

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

 

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S&P 500 Movers

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Outperformers Sector Price 1D % Chg Volume
Macy's Inc Consumer Discretionary 24.9 6.07%            2,805,903
Analog Devices Inc Information Technology 87.6 5.82%            1,543,665
LyondellBasell Industries NV Materials 84.4 5.59%                897,498
Kraft Heinz Co/The Consumer Staples 46.9 5.46%            6,415,902
Wynn Resorts Ltd Consumer Discretionary 108 5.09%                953,312
 
Underperformers Sector Price 1D % Chg Volume
Wynn Resorts Ltd Consumer Discretionary 108 -5.09%                953,313
Incyte Corp Health Care 78.6 -4.99%                584,915
Cabot Oil & Gas Corp Energy 24.8 -4.95%            1,657,908
Alliance Data Systems Corp Information Technology 168 -4.53%                229,115
Molson Coors Brewing Co Consumer Staples 62.4 -3.91%                503,984

 

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